The Alternative Remedies Guide

its not long before the close of the tax year comes near. It is important to make use of any allowances and tax breaks that are .
By using the allowances and annual exemptions you might possibly reduce your tax bill considerably. This can ordinarily be done quick and easily with the help of a financial advisor.

Tax effective investments

Individual savings accounts
Individual Savings Accounts (ISAs). If you are aged over 50 your Isa allowance for the actual tax year is now £10,200. ISA’s are free from capital gains tax, can be used to provide a regular income and are one of the most tax efficient investment products obtainable

Pensions

Pensions are also a tax efficient way of planning for retirement. Most individuals can contribute up to 3,600 gross each tax year and obtain basic rate tax relief on the contribution. Forty percent taxpayers can claim the residue on their self assessment.

Capital Gains Tax Planning

If you have made profits on certain types of investments you may be able to use your annual capital gains tax allowance. This will enable you to make gains up to this level without acquiring a liability to tax. In some examples it is also possible to carry forward previous year’s losses.

Income Tax Planning

Each individual can receive a personal allowance of £6,475 without acquiring any income tax. For married couples or civil partnerships, where one is a 40% taxpayer it is worth looking to see who owns the investments and perhaps look to transfer assets into the
BR taxpayers name.Making annual gifts is also a means of cutting your liability to income tax.

Saving IHT

A person can give an IHT exempt gift each year of up to £3000 in a tax twelvemonth. Any unused exemption can be carried ahead for 1 year only. If you are able to make gifts out of income without it changing your standard of living you may be able to make gifts over the annual exemption limit.

If you consider your estate could be over the Inheritance Tax nil rate band then efficient tax planning can be utilized to bring down your estates possible inheritance tax liability. This could be a suitably drafted will or instead trust provision.

Consilium Asset Management are IFA’s based in Chipping Sodbury South Gloucestershire.

If you are a ifa we have set up Financial Vision. Financial Vision provides an financial advisor website design implementation service to the financial service industry.